Question

5 points Save Ang On January 1, 2021, Dreamworld Co began construction of a new warehouse. The building was finished and ready for use on September 30, 2022 Expenditures on the project were as follows January 1, 2021 $ 308 000 September 1, 2021 $ 456.000 December 31, 2021 $ 456 000 March 31, 2022 $ 456.000 September 30, 2022 $ 308,000 Dreamworld had 55 200,000 in 12% bonds outstanding through both years What was the final cost of Dreamworld's warehouse? $2.181 328 $1984,000 $1275 200 52192 224

Answer 1

Weight Weighed cost 308,000 12/12 152,000 Accumulated expenditures at 12/31/2021 :- Date Amount S 01-Jan-21 308,000 01-Sep-21 456,000 31-Dec-21 456,000 1,220,000 Add: Interest on bond (460000*12%) 55.200 Total 1,275,200 4/12 0/12 460,000 Period Amount $ Weight Weighed cost 1,275,200 1,275,200 456,000 9/9 6/9 304,000 308,000 0/9 Accumulated expenditures at 12/31/2021 31-Mar-22 30-Sep-22 Accumulated expenditures at 09/30/2021 Add: 2022 capitalised interst (1579200*12%*(9/12)) Final cost of Dreamworlds warehouse 1,579,200 2,039,200 142,128 2,181,328 Answer is $ 2,181,328/.